I bought 1k shares at $10.61 and held until now. I think that the stock comes back, but how long will it take. Doubling down may be a good idea if the time horizon isn't too long.
Any opinions on the doubling down idea?
dicey days for doubling down. look at GMR (GMRRQ) and AMR. trying to get your money back will take skill, and luck. there's a huge gap not far above, but this world's really shaky, and news from anywhere can be a killer. if i was adding more, i wouldn't hold very long.
I don't have an informed opinion, but I have an experience.
I held GMR ( big tanker co,) all the way down from 22 to 0.25 always thinking it was too cheap to sell. No analyst ever had a sell on it.
Finally I got round to owning up and selling.
Two weeks later it went BK. The holding was worth a small house when I bought it, and at the end it was worth a Big Mac.
I just bailed on SFL not wanting to ride it down into the dust.
Fro I dumped more promptly.
New Girl I guess the only answer is "Can you aford to lose your double down?" If yes then go for it. I am gambling on FRO myself so I believe their is at least one bounce in it before it dies. If it lives which I think it will do I see 6 or 7 being more of a goal than 10. you have a
3-1 leverage working in your favor on your double down you paid for the first load of shares you bought and now it is 3 buck. You can lower your entry cost and look at getting even as your goal.
If you decide to double down I would suggust putting a "Stop loss or limit" on the shares. Say let it swing 10 or 15% in the wind from entry price and if it goes below that sell. If you buy and it goes up start to work up a sale loss/limit on the stock as it goes up. That way you protect your investment on your double down gamble.
You are gambling as Dake is correct on the co. The business sector that FRO is in is down across the board and not looking to recover too soon.
FRO is got a lot of debt and does have debt payment problems and will have do a refinance to keep from going BK. So in other words they are in real trouble. The ace up FRO sleave has is the majority owner is very rich and powerful and has friends that my bet is work with him on a refinance.
If he chooses to do that. If he does when that is annouced the stock will move up 15-25% is my bet. Again can you stomache risking the money? Know it is gamble? Hedge your bets. Use stops/limits both ways to avoid more of a loss and to protect any gains. Good luck